Middlefield Banc Corp. (OTCQB:
MBCN) today announced results for the second quarter of 2011. Net income totaled $720,000 for the
quarter ended June 30, 2011, representing earnings per diluted share of
$0.44. In comparison, earnings per
diluted share were $0.45, on net income of $715,000, for the second quarter of
2010.

Net income for the first six months of 2011 was $1,722,000
or $1.10 per diluted share. For the
same period of 2010, net income of $1,360,000 equated to $0.87 per diluted
share.

Annualized returns on average equity ("ROE") and average
assets ("ROA") for the 2011 second quarter were 7.22% and 0.45%, respectively,
compared with 7.48% and 0.47% for the second quarter of 2010. ROE and ROA were 8.89% and 0.55%, respectively,
for the six month period of 2011.
Comparable results for the 2010 six month period were 7.27% and 0.46%,
respectively.

"We are pleased with our earnings position for the second
quarter of 2011," stated Thomas G. Caldwell, President and Chief Executive
Officer, "This is especially true as we seek to navigate through a very
uncertain economic environment."

"We remain cautiously optimistic that a transition in that
environment will begin near the end of 2011. We will continue to remain firmly focused
on delivering excellent customer service, increasing value to our shareholders,
and operating our company under safe and sound banking principles," Caldwell
concluded.

For the second quarter of 2011, net interest income
increased $531,000, or 11.6% from the same period last year. A decrease of $369,000 in interest on
deposits was the leading factor in this improvement. Similarly, for the first six months of
2011, net interest income was $1,494,000 above the figure reported for the 2010
first half. An increase of $524,000
in interest income coupled with a decrease in interest expense of $970,000 were
the components of the shift.

The net interest margin for the three months ended June 30,
2011 was 3.64% compared to 3.49% for the same period of 2010. For the six month periods, the net
interest margin for 2011 was 3.66%, with 2010 being 3.39%.

"Our net interest margin continues to show positive
movement," commented Donald L. Stacy, Chief Financial Officer. "However, the challenges relative to
consistent net interest margin improvement are far from over. The Fed's policy of maintaining a
continued low rate environment has led to aggressive pricing on the part of
many of our competitors."

For the three months ended June 30, 2011, management added
$700,000 to the allowance for loan losses, being only a slight increase from
the $690,000 recorded for the same period the prior year. The comparable six months figures are
$1,565,000 for 2011 and $1,129,000 for 2010. The increased loan loss provision on a
year-to-date basis for 2011 was related to a higher level of charge-offs and an
increase in the general allocation for loan losses. Net charge-offs for 2011 were $759,000,
or 0.20% of average loans. The
allowance for loan losses at June 30, 2011 stood at $7,027,000, or 1.82% of
total loans. At June 30, 2010, the
allowance for loan losses was $5,834,000, representing 1.60% of total
loans.

Noninterest income for the second quarter of 2011 was $594,000,
and continues to be tempered by certain regulatory changes including those
mandated by the Dodd-Frank Act. The
first half of 2011 saw the company report noninterest income of $1,293,000,
down only $1,000 from the prior year.

Noninterest expense for the second quarter of 2011 totaled $4,292,000,
an increase of $464,000, from the same period last year. The two largest components of this
increase were salaries and benefits, which was up $231,000, and loss on the
sale of other real estate owned of $230,000. The increased employee costs reflect
increased headcounts, primarily related to special assets/collections, credit
analysis, and regulatory compliance.
For the first half of 2011, total noninterest expense of $7,997,000 was
$611,000 above the 2010 comparable period.

Balance Sheet Growth

The company's total assets as of June 30, 2011 stood at $639.6
million, an increase of 1.2% over the $632.2 million in total assets reported
at December 31, 2010. Net loans at June
30, 2011, were $378.3 million, up $12.0 million, or 3.3%, over the $366.3 million
reported at December 31, 2010.
Total deposits at the end of the second quarter 2011 were $569.7 million
or 0.8% greater than the deposit level of $566.3 million at December 31, 2010. Stockholders' equity at June 30, 2011,
was $42.3 million. Book value per
share as of June 30, 2011, was $25.58.

Dividends

During the second quarter of both 2011 and 2010, Middlefield
paid cash dividends of $0.26 per share.

Middlefield Banc Corp. headquartered in Middlefield, Ohio is
a multi-bank holding company with total assets of $639.6 million. The company's lead bank, The Middlefield
Banking Company, operates full service banking centers and a LPL Financial¬Æ brokerage office serving Chardon, Cortland, Garrettsville, Mantua,
Middlefield, Newbury, and Orwell.
The company also serves the central Ohio market through its Emerald Bank
subsidiary, with offices in Dublin and Westerville, Ohio. Additional information is available at www.middlefieldbank.bank and www.emeraldbank.com

This
press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp.
files with the Securities and Exchange Commission often contain
"forward-looking statements" relating to present or future trends or factors
affecting the banking industry and, specifically, the financial operations,
markets and products of Middlefield Banc Corp. These forward-looking statements involve
certain risks and uncertainties.
There are a number of important factors that could cause Middlefield
Banc Corp.'s future results to differ materially from historical performance or
projected performance. These
factors include, but are not limited to: (1) a significant increase in
competitive pressures among financial institutions; (2) changes in the interest
rate environment that may reduce interest margins; (3) changes in prepayment
speeds, charge-offs and loan loss provisions; (4) less favorable than expected
general economic conditions; (5) legislative or regulatory changes that may
adversely affect businesses in which Middlefield Banc Corp. is engaged; (6)
technological issues which may adversely affect Middlefield Banc Corp.'s
financial operations or customers; (7) changes in the securities markets; or
(8) risk factors mentioned in the reports and registration statements
Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no
obligation to release revisions to these forward-looking statements or to reflect
events or circumstances after the date of this press release.

MIDDLEFIELD BANC CORP.

Consolidated Selected
Financial Highlights

June 30, 2011 and 2010
and December 31, 2010

(unaudited)

(unaudited)

Balance Sheet (period
end)

June 30,

December 31,

June 30,

(Dollar amounts in
thousands)

2011

2010

2010

Assets

Cash and due from banks

$

15,540

$

10,473

$

15,065

Federal funds sold

19,364

20,162

22,152

Interest-bearing deposits in
other institutions

-

-

124

Cash and cash equivalents

34,904

30,635

37,341

Investment securities
available for sale

193,821

201,772

178,963

Loans:

385,339

372,498

364,762

Less: reserve for loan losses

7,027

6,221

5,834

Net loans

378,312

366,277

358,928

Premises and equipment

7,939

8,179

8,360

Goodwill

4,559

4,559

4,559

Bank-owned life insurance

8,118

7,979

7,839

Accrued interest receivable
and other assets

11,921

12,796

10,949

Total Assets

$

639,574

$

632,197

$

606,939

June 30,

December 31,

June 30,

2011

2010

2010

Liabilities and
Stockholders' Equity

Non-interest bearing demand
deposits

$

58,219

$

53,391

$

51,118

Interest bearing demand
deposits

55,315

48,869

40,055

Money market accounts

74,482

71,105

65,275

Savings deposits

160,141

146,993

131,818

Time deposits

221,588

244,893

244,829

Total Deposits

569,745

565,251

533,095

Short-term borrowings

6,787

7,632

7,201

Other borrowings

18,694

19,321

25,040

Accrued interest and other
liabilities

2,045

1,971

1,995

Total Liabilities

597,271

594,175

567,331

Common equity

29,485

28,429

28,201

Retained earnings

16,712

15,840

15,504

Accumulated other
comprehensive income

2,840

487

2,637

Treasury stock

(6,734)

(6,734)

(6,734)

Total Stockholders' Equity

42,303

38,022

39,608

Total Liabilities and
Stockholders' Equity

$

639,574

$

632,197

$

606,939

MIDDLEFIELD BANC CORP.

Consolidated Selected
Financial Highlights

June 30, 2011 and 2010

(Dollar amounts in
thousands)

(unaudited)

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2011

2010

2011

2010

INTEREST INCOME

Interest and fees on loans

$

5,399

$

5,299

$

10,700

$

10,396

Interest-bearing deposits in
other institutions

2

3

4

7

Federal funds sold

4

12

13

23

Investment securities

Taxable
interest

1,289

1,339

2,612

2,542

Tax-exempt
interest

702

647

1,400

1,239

Dividends on FHLB Stock

25

32

51

49

Total interest
income

7,421

7,332

14,780

14,256

INTEREST EXPENSE

Deposits

2,004

2,373

4,041

4,858

Short term borrowings

59

62

118

120

Other borrowings

104

183

213

373

Trust preferred securities

137

128

273

264

Total interest
expense

2,304

2,746

4,645

5,615

NET INTEREST INCOME

5,117

4,586

10,135

8,641

Provision for loan losses

700

690

1,565

1,129

NET INTEREST INCOME AFTER
PROVISION

FOR LOAN LOSSES

4,417

3,896

8,570

7,512

NONINTEREST INCOME

Service charges on deposits

416

433

844

848

Earnings on bank-owned life
insurance

66

65

139

132

Other income

149

169

332

287

Net securities gains (losses)

(37)

18

(22)

27

Total
non-interest income

594

685

1,293

1,294

NONINTEREST EXPENSE

Salaries and employee benefits

1,944

1,713

3,634

3,224

Occupancy expense

223

217

495

493

Equipment expense

155

204

313

402

Data processing costs

173

172

353

415

Ohio state franchise tax

97

134

225

270

FDIC assessment

272

190

497

392

Professional fees

185

188

396

380

Loss on sale of other real
estate owned

323

93

303

214

Other operating expense

920

917

1,781

1,596

Total
non-interest expense

4,292

3,828

7,997

7,386

Income before income taxes

719

753

1,866

1,420

Provision for income taxes

(1)

38

144

60

NET INCOME

$

720

$

715

$

1,722

$

1,360

(unaudited)

(unaudited)

(unaudited)

(unaudited)

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2011

2010

2011

2010

Per common share data

Net income per common share
- basic

$

0.44

$

0.46

$

1.10

$

0.87

Net income per common share
- diluted

$

0.44

$

0.45

$

1.10

$

0.87

Dividends declared

$

0.26

$

0.26

$

0.52

$

0.52

Book value per share(period
end)

$

25.58

$

25.10

$

25.58

$

25.10

Tangible book value per
share (period end)

$

22.82

$

22.21

$

22.82

$

22.21

Dividend payout ratio

56.94%

57.06%

49.36%

60.00%

Average shares outstanding -
basic

1,647,771

1,570,852

1,568,168

1,568,168

Average shares outstanding
-diluted

1,647,920

1,572,084

1,568,243

1,569,742

Period ending shares
outstanding

1,653,660

1,577,771

1,653,660

1,577,771

Selected ratios

Return on average assets

0.45%

0.47%

0.55%

0.46%

Return on average equity

7.22%

7.48%

8.89%

7.27%

Yield on earning assets

5.17%

5.44%

5.23%

5.44%

Cost of interest bearing
liabilities

1.71%

2.15%

1.74%

2.25%

Net interest spread

3.36%

3.29%

3.49%

3.19%

Net interest margin

3.64%

3.49%

3.66%

3.39%

Efficiency (1)

70.68%

68.30%

65.82%

69.86%

Equity to assets at period
end

6.61%

6.53%

6.61%

6.53%

(1) The efficiency ratio is calculated by
dividing non-interest expense less amortization of intangibles by the sum of
net interest